NI 43-101 Technical Report Indata Project · Indata Project OMENICA MINING DIVISION, B.C. NTS:...

NI 43-101 Technical Report

ON THE

Indata Project

OMENICA MINING DIVISION, B.C.

NTS: 093N034 and 093N044

UTM 351900E / 6141200N (NAD 83 Zone 10)

Latitude 550 23' N, Longitude 1250 19' W

(centre)

On Behalf Of

Prophecy Potash Corp.

Suite 800 – 1199 West Hastings Street

Vancouver, BC

V6E 3T5

by

B. L. Laird P.Geo.

Mincord Exploration Consultants Ltd.

Suite 110 – 325 Howe Street

Vancouver BC

V6C 1Z7

August 6, 2018

Table of Contents

1.0 Summary .............................................................................................................................................................1

2.0 Introduction ........................................................................................................................................................2

3.0 Reliance on Other Experts ..................................................................................................................................2

4.0 Property Description and Location .....................................................................................................................2

5.0 Accessibility, Climate, Local Resources, Infrastructure and Physiography ..........................................................3

5.1 Accessibility ....................................................................................................................................................3

5.2 Climate ............................................................................................................................................................3

5.3 Local Resources...............................................................................................................................................6

5.4 Infrastructure ..................................................................................................................................................6

5.5 Physiography ...................................................................................................................................................6

6.0 History.................................................................................................................................................................6

7.0 Geological Setting ............................................................................................................................................ 18

7.1 Regional Geology ......................................................................................................................................... 18

7.2 Property Geology ......................................................................................................................................... 18

7.3 Lithologies .................................................................................................................................................... 18

7.3 Structure and Metamorphism ..................................................................................................................... 21

7.4 Mineralization .............................................................................................................................................. 21

8: Deposit Types .................................................................................................................................................... 23

9: Exploration ......................................................................................................................................................... 24

10: Drilling.............................................................................................................................................................. 24

11: Sample Preparation, Analysis and Security ..................................................................................................... 24

12: Data Verification .............................................................................................................................................. 25

13: Mineral Processing and Metallurgical Testing ................................................................................................. 25

14: Mineral Resource Estimates ............................................................................................................................ 25

15: Mineral Reserve Estimates .............................................................................................................................. 25

16: Mining Methods .............................................................................................................................................. 26

17: Recovery Methods ........................................................................................................................................... 26

18: Project Infrastructure ...................................................................................................................................... 26

19: Market Studies and Contracts ......................................................................................................................... 26

20: Environmental Studies, Permitting and Social or Community Impact ............................................................ 26

21: Capital and Operating Costs ............................................................................................................................ 26

22: Economic Analysis ........................................................................................................................................... 26

23: Adjacent Properties ......................................................................................................................................... 26

24: Other Relevant data and Information ............................................................................................................. 26

25: Interpretation and Conclusions ....................................................................................................................... 26

26: Recommendations ........................................................................................................................................... 27

27: References ....................................................................................................................................................... 29

List of Figures

Figure 1 Location Map ..............................................................................................................................................4

Figure 2 Claim Map ...................................................................................................................................................5

Figure 3 Copper In Soils ......................................................................................................................................... 11

Figure 4 Gold In Soils ............................................................................................................................................. 12

Figure 5 Arsenic In Soils ......................................................................................................................................... 13

Figure 6 Antimony In Soils ..................................................................................................................................... 14

Figure 7 Drill Hole Locations .................................................................................................................................. 15

Figure 8 IP Map ...................................................................................................................................................... 16

Figure 9 Airborne Magnetic Map .......................................................................................................................... 17

Figure 10 Regional Geology Map ........................................................................................................................... 19

Figure 11 Generalized Property Geology ............................................................................................................... 20

List of Tables

Table 1 Terms of the Agreement ..............................................................................................................................1

Table 2 Indata Claim Status .......................................................................................................................................2

Table 3 Northeast Copper Anomaly..........................................................................................................................7

Table 4 Historical Drill Holes .....................................................................................................................................8

Table 5 Significant Lake Zone Copper Intercepts ................................................................................................... 22

Table 6 Polymetallic Gold Vein Intercepts ............................................................................................................. 22

Table 7 Analytical Procedures ................................................................................................................................ 25

Table 8 Proposed Budget Phase I........................................................................................................................... 28

Table 9 Proposed Budget Phase II (contingent upon Phase I) ............................................................................... 28

Indata Property – B. L. Laird, 2018

pg. 1

1.0 Summary

The Indata property is located approximately 130 kilometres to the northwest of Fort St. James in central British

Columbia and is owned 91.2% by Eastfield Resources Ltd. (“Eastfield”) and 8.8% by Imperial Metals Corporation

(“Imperial”). Prophecy Potash Corp. (“Prophecy Potash”) has an option agreement with Eastfield that grants it

the right to earn a 60% interest in the property by paying to Eastfield the aggregate sum of $250,000, by issuing

and allotting to Eastfield an aggregate of $150,000 of fully paid shares of Prophecy and by expending an

aggregate of $2,000,000 on the Indata Property over a five-year period ending on the 5th anniversary of the

agreement.

Table 1 Terms of the Agreement

Date Cash Payment Shares (Value) Work Commitment

Upon Signing $20,000.00

1st Anniversary $20,000.00 $10,000.00 $75,000.00

2nd Anniversary $20,000.00 $20,000.00 $225,000.00

3rd Anniversary $50,000.00 $20,000.00 $300,000.00

4th Anniversary $70,000.00 $40,000.00 $400,000.00

5th Anniversary $70,000.00 $60,000.00 $1,000,000.00

Total $250,000.00 $150,000.00 $2,000,000.00

The Indata property consists of 16 claims comprising 3,189 hectares (7880 acres) and is situated in a complex

geological setting adjacent to the Pinchi Fault, a major structure separating the oceanic derived Cache Creek

Terrane and mafic volcanic, island arc derived, Quesnel Terrane.

Approximately $2,640,000 has been spent exploring the Indata property since 1984, with the most recent work

completed from 2007-2013. Exploration has included the collection of over 4,700 soil samples, the completion

of over 70 kilometres of ground geophysics, including magnetics, VLF and induced polarization, 595 line

kilometres of airborne magnetics and VLF, over three kilometres of excavator trenching, and over 7,300 metres

of core drilling. The most recent work has focused on areas to the south and northwest of the earlier work in

the central part of the property.

Porphyry copper style mineralization at Indata is associated with copper in soil anomalies and coincident broad

chargeability highs. There is known mineralization in the Lake Zone, located on the northwest corner of Albert

Lake. This zone occurs at the north end of a two kilometre long copper in soil anomaly which also contains

strong broad chargeability highs, most of which has yet to be drill tested.

The known mesothermal polymetallic precious metal veins occur 500 metres east of the Lake Zone porphyry

mineralization, within a north-south trending zone that extends for 1,200 metres. These veins occur within

coincidental arsenic-antimony in soil anomalies and show up as strong discrete chargeability highs on the

induced polarization surveys.

A total of 73 diamond drill holes comprising 7,377 metres have been completed on the property, targeting both

mineralization types. Significant copper intercepts include hole 98-I-04, 148.2m, starting at 12.2m downhole, of

0.2%Cu (Yorston, 1998), hole 96-I-1, starting at 11.3m, 97.5 metres grading 0.12% Cu (Bailey, 1996) and 47.26

g/t Au over 4.0 metres in hole 88-I-11 (Bailey, Garratt, Morton, 1989). To date there have been a total of 24 drill

intersections of the polymetallic veins which have returned >1.0 gram per tonne (g/t) gold. To date the drill

programs have tested only a small portion of the property.

The author is unaware of any estimates of mineral resources or reserves carried out on the Indata property.


pg. 2

A two phase exploration program is proposed for the under explored southern part of the Indata property

where recent work has discovered indications of both porphyry copper and polymetallic vein mineralization.

The first phase should entail Induced Polarization (IP) and magnetics and contingent upon favourable results of

Phase I, a second Phase of diamond drilling of the most prospective targets. The Phase I surface work is

budgeted at a cost of $102,790, the Phase II drilling at $355,810. The terms of the agreement between

Prophecy and Eastfield calls for a minimum $75,000 exploration program during the first year.

2.0 Introduction

The author, B.L. Laird P.Geo., has been commissioned by Prophecy Potash Corp., to prepare a NI 43-101

compliant report on the Indata property located in north central British Columbia. The author is a “Qualified

Person”, as defined by the definitions of the Standards for Disclosure for Mineral Projects. The author, B.L. Laird

P.Geo., is independent of Eastfield Resources Ltd. (optionee), the vendor of the property and Prophecy Potash

Corp. (optionor). B.L. Laird is a member in good standing with the Association of Professional Engineers and

Geoscientists of BC (member number #21581).

B.L. Laird P.Geo. has conducted and managed gold and copper mineral exploration programs in Canada, United

States, the Caribbean and Central America since 1984 and has conducted field work (drilling, mapping,

prospecting sampling) at the Indata property most recently on July 9, 2018.

Information sources for this report draw on reports written for/by Eastfield Resources Ltd and by assessment

work reports on file with the British Columbia Ministry of Energy and Mines.

B.L. Laird P.Geo. is responsible for all sections of this report.

3.0 Reliance on Other Experts

The author has not drawn on any report, opinion or statement regarding legal, environmental, political or other

factors during the preparation of this report except those that are referenced herein.

4.0 Property Description and Location

The Property is situated in north-central British Columbia on the east side of Albert Lake, two kilometres west

of the north end of Indata Lake. It is approximately 130 kilometres northwest of the community of Fort St.

James and 230 kilometres northwest of the city of Prince George. The Property is located in the Omineca

Mining Division.

The Property is roughly centred on UTM coordinates 351900E / 6141200N (NAD 83 Zone 10) and 550 23’N /

1250 19’W (latitude / longitude) on NTS sheets 093N034 and 035. The Property location is shown in Figure 1.

The Property consists of 16 mineral claims totalling 3,188 hectares and is situated in a complex geological

setting adjacent to the Pinchi Fault, a major structure separating the Cache Creek and Quesnel Terranes. All of

the claims that comprise the Property are in good standing according to Mineral Titles Online (British

Columbia’s internet-based electronic mineral titles administration system), with Eastfield listed as the owner of

record.

All of the land within the Property is held by the Crown, and there are no permanent structures in the area. A

holder of mineral claims in British Columbia is not entitled to surface rights. Details of the 18 claims, currently

owned by Eastfield (as to 91.2%) and Imperial (as to 8.8%), are shown in Table 2.

Table 2 Indata Claim Status

Tenure Number Claim Name Good To Date Owner Hectares

240192 INDATA 3 October 18, 2019 Eastfield Resources Ltd. 500

362576 IN-6 December 31, 2023 Eastfield Resources Ltd. 25


pg. 3

Tenure Number Claim Name Good To Date Owner Hectares



239379 INDATA 2 October 18, 2019 Eastfield Resources Ltd. 375




238860 SCHNAPPS #4 October 18, 2019 Eastfield Resources Ltd. 250



1060201 LIMESTONE April 21, 2019 Eastfield Resources Ltd. 514.9

1060206 LMY April 21, 2019 Eastfield Resources Ltd. 73.6

362575 SCHNAPPS 6 December 31, 2023 Eastfield Resources Ltd. 25


238723 SCHNAPPS #2 November 14, 2019 Eastfield Resources Ltd. 500

The Nation Lakes Provincial Park abuts the Property on its north and east sides and partially overlaps the claims.

However, the claims were staked prior to the creation of the park and the entirety of the claims area remains

valid. The Protected Areas of British Columbia Act, Schedule D specifically excludes the Schnapps #1 (238722),

Schnapps #2 (238723), Schnapps #4 (238860), Indata #2 (239379) and Indata #3 (240192) mineral claims from

the park. The claims with park boundaries are shown in Figure 2.

In British Colombia, Notices of Work authorizations (Exploration Permits) are required when surface

disturbance is a consequence of the exploration activity. The most recent Notice of Work expired in December

2017 and a new application for a multi year permit was submitted in April 2018. Approval of the new permit is

pending.

5.0 Accessibility, Climate, Local Resources, Infrastructure and Physiography

5.1 Accessibility

Access to the Property is from Fort St. James via the Leo Creek Forestry Road to 68.5km mark and then to 16km

mark on the Driftwood Forest Service Road to the Tchentlo Forest Service Road for5.6km to the Sawtooth

Forest Service Road. The southern limit of the property begins near the 12km mark on the Sawtooth Road. of

the Property. Driving time from Fort St. James to the Property is approximately two hours. Smaller tote roads

and ATV trails have been constructed from the main road to other areas of the Property.

5.2 Climate

The Property is located within a continental cool temperate climatic zone typified by moderately warm moist

summers and cold winters. Permanent snow is usually on the ground from the middle of November until the

beginning of May and can accumulate up to 1.5 metres in depth.

Drawing: 1

Date: 8/5/2018

Scale: 1:20000 Projection: Non-Earth (feet)

Prophecy Potash Corp

Indata Property

Location MapOffice:

Author: BL


Indata Property

Claim Map

1

kilometres

2

Office:

Author: BL

0.5

Drawing: 2

Date: 7/27/2018

Scale: 1:50000 Projection: UTM Zone 10 (NAD 83)

0

River/Stream

Lake

100m Topo Contour

Nation Lake Park

Claim with Tenure #

Claim Outline

Legend

1,010,847

Road


pg. 6

5.3 Local Resources

The nearest BC Hydro power grid is located approximately 60 kilometres to the south of the Property.

The nearest railway in current use is in Fort St James, approximately 130 kilometres southeast of the Property.

The rail bed of the uncompleted Canadian National Railway’s Dease Lake extension line is located 30 kilometres

to the west of the Property.

General supplies can be obtained in Fort St. James. The City of Prince George is located 230 kilometres

southeast of the Property and has significant industry and industrial suppliers to the mining and forestry sectors

along with highway, rail and daily air links to Vancouver.

5.4 Infrastructure

There is road access on the southern and eastern side of the Property and tote trails from to parts of the

eastern and northern areas. There are no permanent dwellings on the Property.

5.5 Physiography

The Property covers an upland area between Indata Lake to the east and Albert Lake to the west (see Figure 2).

Whereas the central part of the Property is of relatively low relief, the topography slopes steeply down towards

Albert and Indata Lakes. The area is covered by thick spruce, balsam and pine, in places of commercial grade,

although low lying areas are usually swampy with a dense cover of alder and poplar. Elevations on the claims

range from 1,000 metres (3,280 feet) to 1,290 metres (4,230 feet).

6.0 History

The initial claims on the Property were staked by Imperial in 1983, and in 1984, Imperial began to explore the

Property. Following initial soil sampling and the staking of additional claims, a four-hole diamond drilling

program was completed in 1985 to explore copper mineralization observed in outcrop near the northeast side

of Albert Lake (the Lake Zone). This program resulted in the discovery of low grade chalcopyrite mineralization

including 5.6 metres of 0.44% Cu (from 57.4 metres) in hole I-85-1 (Pesalj, 1985). Hole depths were relatively

shallow; to a maximum of 76.8 metres.

Note, drill intercept lengths may not be indicative of true thickness.

On March 3, 1986, Imperial sold the claims to Eastfield pursuant to a sale agreement that also covered the sale

of other of Imperial properties, for a total sum of $1, subject to a number of terms that included the right of

Imperial to acquire up to a 30% interest in the Property at a later date.

In 1986, Eastfield undertook a program of grid establishment, soil sampling, hand trenching and geophysical

surveying. This was followed by diamond drilling in 1987, 1988 and 1989 and trenching with a bulldozer-

mounted backhoe in 1989. The drilling programs resulted in the discovery of polymetallic quartz and quartz-

carbonate veins some 500 metres east of the copper mineralization. These veins contained elevated precious

metal values over narrow intervals highlighted by holes 87-I-4 (1.2m from 29.9m at 9.8g/t Au and 0.51% Cu),

87-I-5 (1.2m from 44.5m at 5g/t Au and 0.35% Cu), 88-I-11(4m from 76m at 47g/t Au), 89-I-9 (0.5m from

172.2m at 7.2g/t Au and 0.67% Cu), and 89-I-13 (1.1m from 108.2m at 5.2g/t Au) (Bailey, Garratt, Morton,

1989). The veins generally strike north and dip to the east, and are commonly enveloped by a zone of

silicification in volcanic rocks and a thickening-downwards zone of talc-magnesite alteration in ultramafic rocks.

On February 25, 1988, Imperial acquired a 30% interest in the Property from Eastfield and the two parties

entered into a joint venture. Imperial has not participated in exploration funding in recent years and its interest

in the joint venture has therefore been diluted. As of the date of this reports, it stands at 8.8%, while Eastfield

retains the remaining 91.2%.


pg. 7

In 1988 a heavy mineral sampling program was conducted on streams on the claims. Most results were

unimpressive, even those that drained the area of the precious metal bearing polymetallic vein mineralization,

except for an east draining creek which returned a value of 3360 ppb Au in the southeast corner of the Property

(Morton, 1989).

In 1989 an area of high grade copper and copper-gold mineralization was identified in the northeastern sector

of the property with only minimal follow-up. Here, a cluster of select grab samples from mineralized basaltic to

andesitic flows, flow breccias and tuffs returned a number of high grade results from an open-ended area of

approximately 250 m in a north-south orientation (east-west width unknown). Details of the samples are listed

in Table 3.

Table 3 Northeast Copper Anomaly

Sample # East (UTM) North (UTM) Cu (ppm) Au (ppb)

89-DO-12 351661 6142078 1115 15

89-DO-13 351677 6142159 7834 52

89-DO-15A_60cm 351587 6142795 26165 18

89-DO-15B_50cm 351587 6142795 1954 2

89-DO-15C_100cm 351587 6142795 35959 38

89-DO-15D_75cm 351587 6142795 5366 35

89-DO-16 351616 6142817 11647 85

89-DO-17 351653 6142640 6746 39

21-DR-09 351529 6143190 1812 15

DT-89-06 351659 6142630 13783 54

DT-89-05 351655 6142571 15476 86

DT-89-04 351664 6142584 32984 575

Note UTM NAD83 Zone 10

In 1995, after construction of an access road through the southern part of the Property, built to standards for

log haulage, a trenching program was completed near the northeast corner of Albert Lake, over the copper

zone previously defined by soil sampling and the 1985 drilling. One of these trenches (T-7) returned analyses

which averaged 0.36% copper over length of 75 metres (Morton, 1996).

In 1996, Clear Creek Resources Limited (“Clear Creek”) carried out a small diamond drilling program in the

copper zone northeast of Albert Lake. Results confirmed the existence of copper mineralization identified in the

1985 drilling and encountered mineralization over significantly larger intervals: up to 97.5 metres (from 11.3m)

of 0.12% Cu in drill hole 96-I-1, and 21.0 metres (from 17m) of 0.23% Cu in drill hole 96-I-3 (Bailey, 1996). This

program tested only a very small part of the area covered by anomalous soil copper geochemistry.

Clear Creek returned with another drill program in the copper zone area in 1998 which confirmed and exceeded

the 1996 drilling results and also identified an altered granodiorite stock with copper mineralization adjacent to

the eastern edge of Albert Lake. Holes: 98-I-4 (148.2m starting at 12.2m of 0.2% Cu), and 98-I-9 (58.3m starting

at 19.2m of 0.18% Cu) (Yorston, 1988). Road construction in 1998 exposed silicified volcanic rocks in a road cut

in the southern part of the existing grid where grab samples showed the presence of copper sulfides along with

enriched gold values (sample 10-23-5 with 0.36% Cu, 0.44g/t Au, sample 10-23-7 with 0.39% Cu, 0.18g/t Au,

sample 10-23-8 with 1.4% Cu, 0.3g/t Au, sample 10-23-9 with 6.7% Cu, 1.7g/t Au), demonstrating for the first

time an association of copper and gold on the Property (Morton, 1999).

In 2000, a helicopter borne very low frequency (VLF) and magnetic survey was flown across the Property. A

total of 595 east-west line kilometres were flown by Aerodat Ltd. The data was later reprocessed by Fugro

Airborne Surveys Corp. No new exploration targets were derived from this work.


pg. 8

A program of linecutting, soil sampling and IP surveying was completed in 2003, funded by Castillian Resources

Corp. (“Castillian”), with 11.2 line kilometres of IP survey completed and 16 line kilometres of soil grid

expansions established, and 304 soil samples collected. The bulk of this work was completed in the

northwestern side of the currently explored area. New anomalies consisting of anomalous arsenic (>20ppmAs)

and/or antimony (20ppm Sb) soil values associated with a moderate induced polarization (“IP”) chargeability

response were defined (Morton, 2004).

In 2005, two diamond drill holes were completed (262 metres) in a program funded by Aberdeen International

Inc. (“Aberdeen”). The first hole of the 2005 program, hole 2005-I-1, was designed to test below hole 98-I-4

which returned 148.2 metres grading 0.20% copper including 24.1 metres grading 0.37% (Yorston, 1998).

Unfortunately, significant drilling difficulties were encountered and this hole was abandoned at a depth of 99.1

metres, approximately 50 metres short of the top of the target. The rest of the 2005 drilling was located

approximately 1,400 metres to the south where hole 2005-I-03 encountered 12.4m starting at 18.4m of 0.12%

in a dioritic intrusive. Another hole designated 2005-I-02, located adjacent to 2005-I-03, was abandoned

without successfully setting casing Morton, 2005).

Soil sampling was conducted in 2007 to extend the grids to the west and north in the area north of the Lake

Zone. A zone of anomalous gold (detectable), arsenic (>20ppm As), and antimony (>20ppm Sb) in soils was

located in the northwest corner of the new sampling in an area underlain by recrystallized limestone which is in

fault contact with volcanic rocks to the south (the “Northwest Soil Anomaly”). A short excavator trenching

program targeting 2003 IP and soil anomalies discovered a new polymetallic quartz vein well to the west of

those previously known. The 10 centimetre vein returned assay values of 17.16 and 7.84 g/t Au. This work was

funded by Redzone Resources Ltd. (“Redzone”) (Morton, 2008).

Max Resource Corp. (“Max Resource”) optioned the property in 2008 and funded a five hole 1056.2 metre

diamond drill program, focusing mostly on the polymetallic vein zone. Highlights included hole 08-I-2, which

returned 7.9g/t Au over 0.3 metres starting at 76.5 metres and 08-I-3 which returned 209g/t Ag over 0.5

metres starting at 37.2 metres (Morton, 2009).

Table 4 Historical Drill Holes

Hole # East (UTM) North (UTM) Elev (m) Azimuth Dip Depth (m)

85-1 351135 6141037 1024 60 -45 63.1

85-2 351168 6141042 1049 90 -45 76.8

85-3 351654 6140719 1121 90 -45 57

85-4 351837 6140721 1169 90 -45 33.5

87-I-1 351926 6140813 1174 295 -45 50.6

87-I-2 351926 6140813 1174 0 -90 46.6

87-I-3 351926 6140813 1174 325 -45 52.7

87-I-4 351926 6140813 1174 265 -45 53.6

87-I-5 351936 6140720 1189 295 -45 54.3

87-I-6 351936 6140720 1189 0 -90 47.5

88-I-1 351926 6140770 1179 270 -45 51.5

88-I-2 351926 6140770 1179 0 -90 54.6

88-I-3 351900 6140649 1196 270 -45 79.6

88-I-4 351900 6140649 1196 0 -90 21.6

88-I-5 351900 6140649 1196 270 -65 84.4

88-I-6 351962 6140904 1183 270 -45 114

88-I-7 351911 6141121 1210 260 -56 110.3

88-I-8 351911 6141121 1194 260 -75 150


pg. 9


88-I-9 351933 6141165 1202 270 -46 122.2

88-I-10 351933 6141165 1202 270 -65 128.6

88-I-11 351933 6141165 1202 0 -90 103

88-I-12 351942 6141205 1202 270 -45 85.3

88-I-13 351942 6141205 1202 0 -90 81.4

88-I-14 351976 6141244 1204 270 -45 91.7

88-I-15 351946 6141300 1195 270 -45 110

88-I-16 351767 6140098 1143 290 -45 119.2

88-I-17 351821 6140184 1160 290 -45 61.3

88-I-18 351821 6140184 1160 290 -75 60.4

88-I-19 351924 6140334 1184 290 -45 76.5

88-I-20 351223 6141555 1110 240 -45 67.4

88-I-21 352034 6140898 1190 270 -45 111.6

88-I-22 351999 6140822 1188 265 -55 137.5

88-I-23 351868 6140176 1156 290 -45 76.5

89-I-1 351983 6141161 1212 0 -90 122.2

89-I-2 351949 6141356 1203 270 -60 103.9

89-I-3 351949 6141356 1203 0 -90 110

89-I-4 352037 6141162 1211 0 -90 152.7

89-I-5 352068 6141223 1217 0 -90 154.2

89-I-6 352068 6141223 1217 270 -60 140.5

89-I-7 352017 6141113 1210 0 -90 183.2

89-I-8 352017 6141113 1210 270 -60 138.6

89-I-9 352051 6141057 1206 0 -90 209.1

89-I-10 352357 6140321 1234 295 -60 83.2

89-I-11 352357 6140321 1234 0 -90 91.7

89-I-12 351983 6141161 1212 270 -60 175.6

89-I-13 351983 6141161 1212 230 -62 152.7

96-I-1 351118 6141118 1024 45 -60 151.5

96-I-2 351159 6141126 1024 45 -60 151.5

96-I-3 351086 6141161 1036 315 -50 73.2

96-I-4 351472 6140921 1086 60 -45 78.6

96-I-5 351472 6140921 1086 60 -75 84.2

96-I-6 351615 6140805 1122 90 -47 26.5

96-I-7 351615 6140805 1122 120 -50 26.5

96-I-8 351615 6140805 1122 60 -50 17.7

96-I-9 351472 6140921 1086 120 -60 83.8

98-1 351019 6141009 1036 90 -60 96.3

98-2A 350912 6141089 1034 60 -70 42.4

98-3 350961 6141316 1035 60 -60 80.5

98-4 351001 6141137 1031 90 -60 162.5

98-5 350965 6141662 1079 235 -70 64

98-6 351672 6140961 1160 0 -90 99.4

98-7 351658 6140865 1135 0 -90 88.4


pg. 10


98-8 351386 6140861 1052 270 -60 77.4

98-9 350962 6141116 1031 105 -60 149.4

98-10 351703 6138795 1055 0 -90 67.1

05-I-1 350980 6141146 1031 90 -60 99.1

05-I-2 351661 6139652 1064 115 -45 8.8

05-I-3 351661 6139652 1064 115 -45 154

08-I-01 351131 6141193 1041 250 -65 280.42

08-I-02 351946 6141152 1204 0 -90 156.36

08-I-03 351947 6140829 1183 0 -90 85.96

08-I-04 352126 6141091 1207 0 -90 274.32

08-I-05 352006 6139982 1184 0 -90 259.11

Note: UTM NAD83 Zone 10

In 2010, the Property was optioned to Oceanside Capital Corporation (“Oceanside”). During that year a

program of ground geophysics and soil sampling was conducted. Four north-south lines totalling 5.4 kilometres

were emplaced and an IP and magnetic survey was run along these. One of the lines ran along the east side of

the north end of Albert Lake across the area of the previously known copper in soil anomaly and where

previous porphyry copper mineralization encountered in the 2005 drilling (the Lake Zone). The other three lines

tested the area of the strong gold, arsenic, antimony and bismuth in soil anomaly discovered in 2007 in the

Northwest Soil Anomaly.

A strong chargeability high was returned from the Lake Zone area, coincidental with the copper in soil anomaly.

Chargeability highs were also discovered in the northwest and southeast areas of the other three lines in the

Northwest Soil Anomaly, roughly flanking a prominent ridge of recrystallized limestone (Morton, 2011).

A total of 471 soil samples were collected in 2010. The four IP lines were sampled and three other widely

spaced reconnaissance type east-west lines were emplaced and sampled in the southern part of the Property

to the south of the existing grids. The multi-element “epithermal-type” soil anomaly in the northwest part of

the Property was confirmed and spotty gold and copper anomalies were discovered on the southern lines.

The 2011 program was made up of an IP/magnetics survey along the three southern 2010 soil lines, which

totalled 8.1 line kilometres. Two north-south trending chargeability highs were encountered near the eastern

end of the two northern lines (L100N and L300S). A strong copper in soil anomaly (>200ppm Cu) coincides with

the western chargeability high on L100N. The southernmost line (L1850S) is 1,550 metres south of the other

two lines and has three prominent chargeability highs (Morton, 2012).

In 2012, Oceanside and Eastfield constructed 3.2 kilometres of drill road access along with the construction of

six drill sites. Eighteen rock samples were collected during this work, one of which returned an analysis of 0.78%

copper in dacitic volcanic float from a new road in the southern part of the Property, in the area of the 2010-

2011 soil sampling and geophysical work (Morton, 2013a).

The 2013 program was focused on the southern part of the property in the area where the copper bearing float

was discovered in 2012. Minor prospecting and rock sampling was conducted and additional mineralized float

and rubble was found in the area. Three 1,000 metre east-west soil lines were emplaced in the same area with

samples collected at 50 metre intervals, to a total of 62 samples. A number of localized copper anomalies were

discovered. As well, 17 silt samples were taken from a number of areas of the Property. Two rubble samples

returned 0.38% Cu with 71 ppb Au and 0.32% Cu with 210 ppb Au respectively from the general vicinity of

where a similar sample had returned 0.78% Cu in 2012. Subsequent to this work, Oceanside terminated its

option on the Property in October 2013 (Morton, 2013b).

350,0

00 m

E

351,0

00 m

E

352,0

00 m

E

353,0

00 m

E

354,0

00 m

E

6,137,000 mN

6,138,000 mN

6,139,000 mN

6,140,000 mN

6,141,000 mN

6,142,000 mN

6,143,000 mN


Indata Property

Copper In Soils

400

metres

800

Office:

Author: BL

200

Drawing: 3

Date: 7/30/2018


0

Copper In Soils (ppm)

500 to 10,000250 to 500100 to 250

350,0

00 m

E

351,0

00 m

E

352,0

00 m

E

353,0

00 m

E

354,0

00 m

E

6,137,000 mN

6,138,000 mN

6,139,000 mN

6,140,000 mN

6,141,000 mN

6,142,000 mN

6,143,000 mN

6,144,000 mN

Drawing: 4

Date: 7/27/2018


Office:

Author: BL

800

Indata Property

Gold In Soils


0 200 400

metres

Gold in Soils (ppb)

>10025 to 10010 to 25

350,0

00 m

E

351,0

00 m

E

352,0

00 m

E

353,0

00 m

E

354,0

00 m

E

355,0

00 m

E

6,137,000 mN

6,138,000 mN

6,139,000 mN

6,140,000 mN

6,141,000 mN

6,142,000 mN

6,143,000 mN

6,144,000 mN


Indata Property

Arsenic In Soils

400

metres

800

Office:

Author: BL

200

Drawing: 5

Date: 7/28/2018


0

Arsenic In Soils (ppm)

<500200 to 500100 to 250

350,0

00 m

E

351,0

00 m

E

352,0

00 m

E

353,0

00 m

E

354,0

00 m

E

6,137,000 mN

6,138,000 mN

6,139,000 mN

6,140,000 mN

6,141,000 mN

6,142,000 mN

6,143,000 mN

6,144,000 mN


Indata Property

Antimony In Soils

400

metres

800

Office:

Author: BL

200

Drawing: 6

Date: 7/28/2018


0

Antimony In Soils (ppm)

>10050 to 10020 to 50>20

351,0

00 m

E

351,5

00 m

E

352,0

00 m

E

6,139,500 mN

6,140,000 mN

6,140,500 mN

6,141,000 mN

6,141,500 mN

05-I-1

08-I-05

05-I-2

88-I-18

88-I-17

88-I-16

89-I-11

89-I-10

88-I-22

88-I-288-I-1 87-I-4 87-I-3

87-I-287-I-1

88-I-3 88-I-4

88-I-5

85-4

88-I-21

88-I-1188-I-10

88-I-9 08-I-02

88-I-788-I-8

88-I-12

88-I-13 89-I-13

89-I-4

89-I-12

89-I-1

89-I-7 89-I-8

89-I-689-I-5

89-I-9

89-I-3

88-I-6

98-8

96-I-9

85-3

96-I-696-I-796-I-8

89-I-2

98-3

08-I-01

96-I-2

96-I-198-498-9

98-2A

85-285-1

98-1

87-I-5

88-I-14

88-I-15

88-I-19

88-I-20

88-I-23

96-I-3

96-I-4

98-5

98-6

98-7

05-I-3

08-I-03

08-I-04

87-I-6

96-I-5


Indata PropertyDrill HoleLocations

100

metres

200

Office:

Author: BL

50

Drawing: 7

Date: 8/4/2018


0

hole_id from_m to_m interval_m au_ppb ag_ppm cu_%

87-I-1 18.9 20.7 1.8 1,320 0.2 0

87-I-1 23.8 26.2 2.4 1,647 55.2 0.28

87-I-1 27.4 29.9 2.5 1,805 114.4 0.44

87-I-3 24.1 28.3 4.2 3,245 126.6 0.32

87-I-4 24.2 26.2 2 1,496 124.4 0.31

87-I-4 29.9 31.1 1.2 9,835 51.4 0.51

87-I-5 42.5 44.5 2 1,209 104.5 0.85

87-I-5 44.5 45.7 1.2 5,000 56.2 0.35

88-I-7 48.5 49 0.5 1,020 1.3 0.14

88-I-8 41.5 42 0.5 3,845 1.3 0.11

88-I-9 58.5 59.5 1 3,922 1.7 0.13

88-I-10 53 53.5 0.5 2,605 2.8 0.06

88-I-10 55 55.5 0.5 2,875 1.1 0.08

88-I-11 66 67 1 6,150 4 0.43

88-I-11 76 80 4 47,260 2 0

88-I-15 81 83 2 1,355 2.9 0.11

88-I-22 57.7 59.1 1.4 1,229 42.9 0.25

89-I-1 33.9 34.1 0.3 2,157 15.5 0.78

89-I-9 159.4 160.1 0.7 1,903 7.2 0.11

89-I-9 161.6 162.4 0.8 4,837 3.1 0.23

89-I-9 172.2 172.7 0.5 7,209 6.7 0.67

89-I-12 102.7 104.4 1.7 1,825 23.3 0

89-I-13 108.2 109.3 1.1 5,162 1.3 0

08-I-02 76.5 76.8 0.3 8,202 4.4 0.18

Hole_ID From_m To_m Interval_m Au_ppb Ag_ppm Cu_%

96-I-3 17 38 21 0 0 0.23

98-4 12.2 160.4 148.2 0 0 0.2

98-4 133.3 157.4 24.1 0 0 0.37

08-I-01 123 150 27 0 0 0.27


Indata Property

IP (50m slice)

400

metres

800

Office:

Author: BL

200

Drawing: 8

Date: 8/5/2018


0

ProposedIP Line

Legend


Indata Property

Airborne Magnetics

Scale: 1:20000

0 200 800400

metres

Drawing: 9

Projection: UTM Zone 10 (NAD 83)

Date: 8/5/2018

Author: BL

Office:

57,700

62,100

58,000

58,300

58,500

59,300

Magneticsnanoteslas


pg. 18

7.0 Geological Setting

7.1 Regional Geology

The Property lies west of and along splay faults related to the contact of two major terranes of the Canadian

Cordillera: the Quesnel and Cache Creek Terranes. The contact between these terranes is marked by the Pinchi

Fault Zone, a high angle reverse fault of regional extent, and associated splay faults where Cache Creek strata to

the west have been thrust over Takla strata to the east. The fault zone is up to 10 kilometres in width. The

regional geology of the Property area is shown in Figure 10.

The Quesnel Terrane consists of mafic to intermediate volcanic rocks of the Upper Triassic – Lower Jurassic Takla

Group intruded by the Hogem Batholith, which is composed of intrusive phases which range in composition

from granite to monzonite to quartz syenite, which range in age from Lower Jurassic to Cretaceous.

The Cache Creek Terrane in the region comprises mainly argillaceous metasedimentary rocks intruded by diorite

to granodiorite plutons (which may be pre-Triassic or Lower Cretaceous in age) and by small ultramafic stocks.

Some of these latter intrusions may be of ophiolitic origin.

A northwest-striking fault bounded block situated between the two terranes (within the Pinchi Fault Zone)

underlies the Property. This block is underlain largely by limestone within which a sliver of mafic and

intermediate volcanic rocks is preserved. Both the limestone and volcanic rocks are considered here to be part

of the Cache Creek Group but the evidence for this is equivocal as similar strata occur within the Takla Group

elsewhere in the region. As well, the volcanic rocks in this block have been subjected to greenschist facies

metamorphism, similar to what is normally found in Cache Creek rocks, whereas generally the metamorphic

grade of the Takla Group volcanic rocks is rarely higher than zeolite facies. But the area’s proximity to such a

major fault may locally have raised the metamorphic grade as has been demonstrated further to south along

the Pinchi fault at Pinchi Lake where metamorphic grade increases to blueschist grade at the fault. It is also

possible that the major fault movements along the Pinchi Lake Fault have juxtaposed Cache Creek limestone

against Takla volcanic rocks within this fault block.

In summary, it is not definitely known to which terrane the various rock types on the Property belong.

The dominant structural style of the Takla Group is that of extensional faulting, mainly to the northwest. In

general Takla Group rocks are tilted but not folded. In contrast, strata of the Cache Creek Group have been

folded and metamorphosed to lower to middle greenschist facies and a penetrative deformational fabric has

been preserved in argillaceous rocks. Extensional faults are also common within the Cache Creek Group and

probably represent the effects of post-collision uplift.

7.2 Property Geology

Generalized property geology has been derived from various phases of outcrop sampling and the top lithology

of drill holes and is shown in Figure 11.

7.3 Lithologies

The Property is underlain by two main supracrustal assemblages: limestone with minor intercalated shale; and

andesitic volcanic rocks that were deposited under marine conditions. As discussed above, it is uncertain

whether these rocks belong to the Cache Creek or Quesnel Terranes. Local bodies of serpentinite on the

Property are thought to be intruded into the Pinchi Fault Zone.

Limestone outcrops as prominent hills and bluffs in the northern, western and southern parts of the area.

Although generally massive, in places bedding is defined by thin shaley partings and by intraformational

345,0

00 m

E

350,0

00 m

E

355,0

00 m

E

360,0

00 m

E

6,125,000 mN

6,130,000 mN

6,135,000 mN

6,140,000 mN

6,145,000 mN

6,150,000 mN

Indata

PnTrCTus

LTrJHgb

uTrTI

EJHqm

PnTrCP

EKH

PnTrCTumPJCS

PnTrCTum

EKgd

Pin

chi F

ault

uTrTI

PnTrCSvb

EKH

EJHqm

uKTS

PnTrCSvb

PTrCRdb

EJHqm


Indata Property

Regional Geology

2

kilometres

4

Office:

Author: BL

1

Drawing: 10

Date: 8/5/2018


0

Late Cretaceous - Miocene

Early Cretaceous

Early Jurassic

Late Triassic - Early Jurassic

Late Triassic

Early Permian - Late Jurassic

Early Permian - Late Triassic

Late Pennsylvanian to Late Triassic

Early Pennsylvanian to Middle Triassic

Fault

BCGS Geology 2017

Late Cretaceous - Miocene

Early Cretaceous

Early Jurassic

Late Triassic - Early Jurassic

Late Triassic

Early Permian - Late Jurassic

Early Permian - Late Triassic

Late Pennsylvanian to Late Triassic

Early Pennsylvanian to Middle Triassic

Fault

BCGS Geology 2017

Cache Creek Complex - Rubyrock Igneous Complex

Takla Group - Inzana Lake Formation

Takla Group

Cache Creek Complex - Sowchea Succession

Cache Creek Complex - Sowchea Succession

Cache Creek Complex - Trembleur Ultramafite Unit

Cache Creek Complex - Trembleur Ultramafite Unit

Sifton Formation

Hogem Plutonic Suite



Cache Creek Complex - Pope Succession

PTrCRgb

uTrTI

uTrTvc

PJCS

PnTrCSvb

PnTrCTum

PnTrCTus

uKTS

EKgd

EKH

EJHqm

LTrJHgb

PnTrCP

350,0

00 m

E

351,0

00 m

E

352,0

00 m

E

353,0

00 m

E

354,0

00 m

E

355,0

00 m

E

356,0

00 m

E

6,136,000 mN

6,137,000 mN

6,138,000 mN

6,139,000 mN

6,140,000 mN

6,141,000 mN

6,142,000 mN

6,143,000 mN

6,144,000 mN


Indata PropertyGeneralized Local

Geology

500

metres

1,000

Office:

Author: BL

250

Drawing: 11

Date: 8/2/2018


0

Limestone

Andesite - Pillow BasaltPyroclastics

VolcaniclasticsAndesite - Dacite

Granodiorite

Serpentine

Gabbro/Peridotite

Vein

Legend

Johnston, 2015


pg. 21

limestone conglomerate. Breccias formed by carbonate dissolution are displayed within karst topography in the

southwestern part of the Property at the southern end of Albert Lake.

Volcanic rocks underlying the Property are of andesitic composition and can be subdivided into two broad units.

In the western part of the Property, volcanic rocks consist of pillow lava, pillow breccia, coarse tuff breccia and

fine-grained crystal lithic tuff. The dominant mafic mineral in these rocks is amphibole, now represented by

tremolite/actinolite but was probably hornblende prior to alteration. The second volcanic unit consists of

massive to poorly bedded volcanic tuff with variable amounts of amphibole phenocrysts. Although commonly

poorly bedded, bedding planes and fining upwards sequences can be recognized in places.

Intrusive rocks recognized on the Property range in composition from ultramafic to granite and underlie the

central part of the Property area. Hornblende diorite occurs as a pluton which extends along part of the eastern

side of the central part of the property and as dykes. The bulk of this pluton has a fine to medium-grained

hypidiomorphic granular texture although both marginal phases of the pluton and the dykes are porphyritic. A

small part of the pluton is of quartz diorite composition although primary quartz is generally absent. While

diorite dykes are common within the volcanic rocks of the property, no diorite intrusions have been observed

within the limestone unit, suggesting that the diorite and volcanic rocks are of similar age and are either older

than the massive limestone or that the limestone is allochthonous with respect to the volcanics and was

emplaced adjacent to the volcanic strata after volcanism and plutonism had ceased.

Intruding both volcanic rocks and diorite are ultramafic bodies, serpentinite to varying degrees but which

preserve textures suggesting that the original rocks were peridotite and pyroxenite. Cross fibre chrysotile veins

and veinlets occur throughout these bodies. To the south of Radio Lake a differentiated and zoned ultramafic-

mafic intrusion occurs, consisting of a coarse-grained clinopyroxenite core, surrounded by peridotite and, in

turn, enclosed by medium to coarse-grained hornblende-clinopyroxene gabbro.

The youngest intrusive rocks on the Property consist of medium to coarse-grained grey and reddish grey biotite

quartz monzonite and granite. Whereas all other intrusive rocks in the area have been emplaced only into

volcanic strata, this unit also intrudes limestone of the Cache Creek Group.

A large part of the Property is covered by glacial and fluvioglacial deposits. Extensive areas of glacial derived

clay in low-lying areas complicate geochemical soil results.

7.3 Structure and Metamorphism

The area covered by the Property can be divided into two structural domains: (i) the area underlain by

carbonate rocks which is characterized by concentric folds and the development of a penetrative fabric in finer

grained clastic interbeds; and (ii) that area underlain by volcanic strata which has undergone brittle

deformation only. Contacts between carbonate and volcanic strata are obscured by young cover but are

inferred to be northwesterly-striking faults. Drilling and geological mapping in the central part of the Property

has indicated the presence of a number of westerly-striking faults which show normal displacements of up to a

few tens of metres.

Carbonate rocks have generally been recrystallized with the common development of sparry calcite while fine

grained clastic interbeds display a greenschist facies mineral assemblage. The assemblage actinolite/tremolite-

chlorite-epidote within the matrix of volcanic rocks also suggests the attainment of greenschist grade of

regional metamorphism in these strata.

7.4 Mineralization

Exploration on the Property has resulted in the discovery of a number of metallic mineral occurrences which

can be divided into two main types: porphyry copper mineralization and quartz-carbonate polymetallic vein

mineralization.


pg. 22

The currently known area of porphyry copper mineralization occurs on the east side of the north end of Albert

Lake (Lake Zone). Here a strong and consistent >250 ppm Cu in soil anomaly often coincides with chargeability

anomalies from the induced polarization surveys. This soil anomaly is approximately 2,000 metres north to

south and averages 400 to 600 metres east to west. Porphyry copper style mineralization is known at the north

end of this feature in outcrops, trenches and drill core occurring as disseminated and fracture controlled pyrite-

chalcopyrite-pyrrhotite in volcanic and granodiorite rock units. The best drill results from this area have been

148.2 metres, starting at 12.2 metres, averaging 0.20% copper, including 24.1 metres of 0.37% Cu in drill hole

98-I-4 (Yorston, 1998). Minor work has been conducted in the southern part of the soil anomaly/chargeability

high where exploration work in 2012 and 2013 has discovered similar mineralized rubble 3,800 metres to the

south indicating that the area of porphyry copper mineralization may extend across a considerable area.

Table 5 Significant Lake Zone Copper Intercepts

Hole # From (m) To (m) Interval (m) Au (ppb) Ag (ppm) Cu (%)

96-I-3 17 38 21 0 0 0.23

98-4 12.2 160.4 148.2 0 0 0.2

Including 133.3 157.4 24.1 0 0 0.37

08-I-01 123 150 27 0 0 0.27

Polymetallic veins have been recognized in the central part of the Property to the east of the porphyry copper

mineralization within andesitic volcanic rocks and serpentinized ultramafics. The veins generally occupy a

northerly-striking fault zone dipping shallowly to the east. Within ultramafic rocks, the veins are accompanied

by zones of intense carbonate and talc alteration zones which range in width from a few metres to over 50

metres in deeper and more easterly parts of the fault. Proximal to the veins in volcanic rocks, especially

adjacent to ultramafic contacts, alteration is dominated by silicification and the formation of quartz-carbonate

veinlets but silicification is not common within ultramafic rocks.

To date, a number of separate mineralized polymetallic veins have been located on the Property. Most of these

are in the central part of the Property on top of the ridge between Indata and Albert Lakes, and all have general

north-south orientations. The longest of these has been traced in drilling for over 450 metres. Another vein

occurs to the northwest, halfway towards the Lake Zone porphyry copper mineralization. It was discovered in

2007. This vein is 10 centimetres in width and has an east-west orientation (Morton, 2008).

Polymetallic veins often exhibit a subtle banded appearance with bands of quartz dominant material

interrupted with sulphide rich sections where the sulphide content can exceed 50%. Sulphides are dominantly

pyrrhotite, arsenopyrite and stibnite with lesser pyrite and minor chalcopyrite. Veins average approximately

1.5 metres in width but vary between 0.5 and 5.6 metres. Trace amounts of gersdorffite (a nickel arsenide),

bismuthinite (a bismuth telluride), pentlandite (a nickel sulphide) and free gold have been documented in

petrographic samples taken from high-grade intercepts.

Table 6 Polymetallic Gold Vein Intercepts


87-I-1 18.9 20.7 1.8 1320 0.2 0

87-I-1 23.8 26.2 2.4 1647 55.2 0.28

87-I-1 27.4 29.9 2.5 1805 114.4 0.44

87-I-3 24.1 28.3 4.2 3245 126.6 0.32

87-I-4 24.2 26.2 2 1496 124.4 0.31

87-I-4 29.9 31.1 1.2 9835 51.4 0.51


pg. 23


87-I-5 42.5 44.5 2 1209 104.5 0.85

87-I-5 44.5 45.7 1.2 5000 56.2 0.35

88-I-7 48.5 49 0.5 1020 1.3 0.14

88-I-8 41.5 42 0.5 3845 1.3 0.11

88-I-9 58.5 59.5 1 3922 1.7 0.13

88-I-10 53 53.5 0.5 2605 2.8 0.06

88-I-10 55 55.5 0.5 2875 1.1 0.08

88-I-11 66 67 1 6150 4 0.43

88-I-11 76 80 4 47260 2 0

88-I-15 81 83 2 1355 2.9 0.11

88-I-22 57.7 59.1 1.4 1229 42.9 0.25

89-I-1 33.9 34.1 0.3 2157 15.5 0.78

89-I-6 19.6 22.8 3.2 0.01 354.1 0.12

89-I-7 110.4 112.4 2 1335 1.7 0.12

89-I-9 159.4 160.1 0.7 1903 7.2 0.11

89-I-9 161.6 162.4 0.8 4837 3.1 0.23

89-I-9 172.2 172.7 0.5 7209 6.7 0.67

89-I-12 102.7 104.4 1.7 1825 23.3 0

89-I-13 108.2 109.3 1.1 5162 1.3 0

08-I-02 76.5 76.8 0.3 8202 4.4 0.18

08-I-03 37.2 37.7 0.5 400 209.0 0.13

Antimony, arsenic and gold are the best soil geochemical pathfinders for the polymetallic veins. The high sulfide

content of the veins also makes them a good target for closely spaced IP surveys.

The relationship between the porphyry copper mineralization and the polymetallic veins has yet to be

established although it is possible that the polymetallic vein mineralization represents an outer zone to a

central, copper-dominated part of the same hydrothermal system. The host volcanic rocks of the porphyry

copper mineralization exhibit a mineral assemblage consistent with both propylitic hydrothermal alteration and

greenschist faces regional metamorphism and could be a result of either one of, or both processes. Because of

poor outcrop and the paucity of drilling within the copper zone and in areas away from the polymetallic veins, a

regional hydrothermal zonation has not been adequately interpreted within the Property. Alternatively, the

veins and porphyry copper style mineralization may be unrelated and are present together as coincidence,

centered on the strong structural provenance of the Pinchi Fault Zone.

8: Deposit Types

The Property is host to mineralization of two deposit types: polymetallic precious metal veins and porphyry

copper. Porphyry copper mineralization is known on the Property from the Lake Zone on the east side of Albert

Lake, some 500 metres west of the area of the polymetallic veins. Drill results here include hole 98-I-4 which

returned 148.2 metres grading 0.20% copper including 24.1 metres grading 0.37% Cu. There are a number of

other porphyry copper occurrences in the area. The Central Zone of Serengeti Resources’ Kwanika Project,


pg. 24

located 14 kilometres north of the Property, contains an indicated 57.7 million tonnes grading 0.48% copper

and 0.55 g/t gold at a 0.4% copper equivalent cut-off (SRK, 2016).

“Homestake” style gold mineralization, similar to the Property vein occurrences, occurs at the Snowbird deposit

located near Fort St. James to the south of the Indata region, and at Mt. Sir Sidney Williams to the north of the

Property. Arsenopyrite-stibnite-chalcopyrite-pyrite veins with enriched precious metals occur at these

occurrences at or near the contact of mafic and ultramafic rocks. Drill results from polymetallic veins on the

Indata Property include 4.0 metres of 46.20g/t Au and 2.0g/t Ag in hole 88-I-11, and 3.2 metres of 0.01 g/t Au

and 354.1 g/t Ag in hole 89-I-6.

Other mineralization styles are known from elsewhere in the region. Epithermal mercury mineralization in

carbonate rocks occurs at the former producing Bralorne-Takla Mercury Mine, located 26 kilometres north of

the Property, and Pinchi Mine, located 100 kilometres to the southeast. The Stardust skarn deposit (previously

known as Lustdust) is located 1.5 kilometres west of the Bralorne-Takla Mine with an indicated mineral

resource of 985,000 tonnes grading 1.34 % Cu, 1.59 g/t Au and 36.8 g/t Ag above a copper equivalent cut-off

grade of 1.5%. An additional 1,985,000 tonnes grading 1.24%Cu, 1.72 g/t Au and 30.5 g/t Ag is classified as

inferred (Simpson, January, 2018).

9: Exploration

Prophecy Potash has not conducted any exploration activities on the Indata property.

Previous workers have used a variety of exploration techniques and found that soil geochemistry and IP

geophysics have useful tools for the discovery of the two main types of mineralization (porphyry copper and

polymetallic veins).

Copper in soil anomalies have worked well in outlining buried porphyry copper mineralization at the Lake Zone,

and arsenic and antimony have proved to be good pathfinders for the polymetallic vein occurrences.

The IP also works well for locating both types of mineralization. The broad zones of disseminated sulfides of the

porphyry copper mineralization show as broad areas of anomalous chargeability, and the high concentrations of

sulfides in the polymetallic veins show as strong, discrete spikes in the chargeability plots.

10: Drilling

Prophecy Potash has not conducted any drilling activities on the Indata property.

11: Sample Preparation, Analysis and Security

This report draws from work completed prior to the implementation of National Instrument 43-101. Sample

preparation prior to shipment to the analytical laboratory is limited to drying of soil and silt samples only. Rock

and core samples are subject to no preparation in camp.

Historical samples from work at the Indata project were analyzed by Acme Analytical Laboratories Ltd. (now

Bureau Veritas Commodities Canada Ltd). and Chemex Labs Ltd. (now ALS Laboratory Group), both of which

operate ISO 9001:2000 certified facilities in Vancouver BC. Internal standards were routinely inserted by Acme

Analytical Laboratories who completed the preponderance of analytical work. No external standards were

inserted into the sample stream by any of the operators excepting during the 2008 program in which external

standards were introduced into the drill core sample stream on a ratio of one standard per 30 samples and

were reviewed and determined to have acceptable corresponding analytical results. A summary of drill core

analysis labs and techniques are as follows:


pg. 25

Table 7 Analytical Procedures

Year Laboratory Technique

1985 Acme Analytical Laboratories Ltd. ICP-ES (inductively coupled emission spectroscopy),

gold by fire assay/AA



1988 Acme Analytical Laboratories Ltd.

Checks by Chemex Labs Ltd.

ICP-ES (inductively coupled emission spectroscopy),


1989 Acme Analytical Laboratories Ltd.

Checks by Chemex Labs Ltd.

ICP-ES (inductively coupled emission spectroscopy),



gold fire assay/AA



2005 Acme Analytical Laboratories Ltd. ICP-MS


gold by ICP-ES fusion

2011 Acme Analytical Laboratories Ltd. Aqua Regia digestion Ultratrace ICP-MS analysis (30g),

Fire Assay fusion Au Pt Pd by ICP-ES (30g)

2012 Acme Analytical Laboratories Ltd. Aqua Regia digestion ICP-ES analysis (0.5g), Fire assay

fusion Au Pt Pd by ICP-ES (30g)

2013 Acme Analytical Laboratories Ltd. Aqua Regia digestion Ultratrace ICP-MS analysis

Soil samples for all the programs were analysed by Acme Analytical Labs of Vancouver. Multi element

techniques including either ICP-ES (inductively coupled emission spectroscopy) or ICP-MS (inductively coupled

mass spectrometer) methods were used. Gold was routinely analysed separately using geochemical-assay

techniques.

The author believes sample handling preparation and security have been conducted to industry standards and

finds no issue with the work.

12: Data Verification

The author supervised and conducted fieldwork at Indata in during the 2008 drill program and fieldwork in

2011 and 2013. The author has examined analytical certificates produced by Acme Analytical Labs Ltd. (later

Bureau Veritas Minerals) and checked the replicability of internal standards inserted into the sample stream.

The author is satisfied that the sampling procedures and data are reliable.

Standards were submitted at a frequency of 1 per 30 samples during the 2008 drill program and these

maintained a consistent return from the lab.

B.L. Laird P.Geo completed a field inspection of the property on July 9, 2018 and is satisfied that the data is

representative of the samples collected.

13: Mineral Processing and Metallurgical Testing

Not applicable to the Indata property at this time.

14: Mineral Resource Estimates

There have been no mineral resource estimates on the mineralization found at the Indata Property.

15: Mineral Reserve Estimates

There have been no mineral reserve estimates on the mineralization found at the Indata Property.


pg. 26

16: Mining Methods


17: Recovery Methods


18: Project Infrastructure


19: Market Studies and Contracts


20: Environmental Studies, Permitting and Social or Community Impact

First Nation land claims are still unresolved in this area although no settlements, current or historic, or

archaeologically significant sites, are documented on the claims. There are no known environmental issues

concerning the claims which are located predominantly on provincially owned land. In British Colombia Notices

of Work authorizations (Exploration Permits) are required when surface disturbance is a consequence of the

exploration activity. A multiyear exploration permit for the project is in the application process.

21: Capital and Operating Costs


22: Economic Analysis


23: Adjacent Properties

Serengeti Resources’ Kwanika Project is located 10 kilometres north of Indata. It hosts significant porphyry

copper mineralization in two zones. The Central Zone of Serengeti Resources’ Kwanika Project, located 14

kilometres north of the Property, contains an indicated 57.7 million tonnes grading 0.48% copper and 0.55 g/t

gold at a 0.4% copper equivalent cut-off (SRK, 2016). The author cautions that the results from the Kwanika

Property are not necessarily indicative of mineralization on the Indata Property.

24: Other Relevant data and Information

Not applicable.

25: Interpretation and Conclusions

Exploration on the Indata Property starting in 1983 and continuing to present day has identified the existence

of three mineralization target types; mesothermal polymetallic precious metal veins, porphyry copper

mineralization and ophiolite hosted nickel. Porphyry copper is known on the north and east sides of Albert Lake,

and the vein mineralization occurs some 500 metres east of this, in the north central part of the property while

the ophiolite hosted gold is located in the southern region of the claim group on the eastern side.

The polymetallic vein gold and silver mineralization at Indata is localized within fault zones which are thought to

be related to the Pinchi Fault system which is a major structural feature and terrane boundary in central British

Columbia. Quartz veins with up to 50% sulfides as pyrite, arsenopyrite, stibnite and pyrrhotite occur within

north-south trending shear zones within both mafic volcanic and ultramafic rocks. In the latter setting the veins


pg. 27

are associated with carbonate and talc alteration and often accompanied with quartz-carbonate veins.

Silicification of the host rocks is common within the mafic volcanic lithologies.

The veins range in size from centimetres up to 5.6 metres in width. Drill results to date have produced two

exceptionally high results; 47.26g/t Au from hole 88-I-11, and 351.1g/t silver from hole 89-I-6. Mineralization

has so far been traced discontinuously for 1200 metres in a north-south direction

Anomalous arsenic and antimony soil geochemistry is a good pathfinder to locating these zones of

mineralization, though there is no direct correlation between the soil values and that of the gold and silver in

the veins. Chargeability highs from induced polarization surveys often reflect the high sulfide contents of the

mineralized veins, and coincidence of these two methods are a good targeting method in the exploration for

such mineralization.

Soil sampling in 2007 discovered an area of strong coincidental arsenic-antimony bismuth in soil results in the

northwest part of the sampled area, located two kilometres northwest of the known polymetallic vein

mineralization. The anomaly is largely underlain by recrystallized limestone. Regional geological maps and

airborne magnetic data interpretation indicate a northeast rending fault underlying this area. An IP survey

completed in 2010 in the NW Soil anomaly has defined two compelling drill targets in this area, I.) at

approximately 400N on line 670E and ii.) at approximately 800N on line 170E. Another area of silicified

limestone exists on the extreme southeastern side of the claim group.

Porphyry copper mineralization has been known on the northeast side of Albert Lake since 1985 where it is

hosted in dioritic and granodioritic intrusives and in volcanic rocks and associated sediments. Disseminated and

vein chalcopyrite occurs with pyrite and pyrrhotite and has been located over an area of 200 by 200 metres

near the lake, with drill results as high as 148.2m starting at 12.2m of 0.2% Cu, including 24.1 metres averaging

0.37% Cu (hole 98-I-4). Additional mineralization was also discovered in 1996, some 350 metres to east, toward

the polymetallic veins area. The copper mineralization is associated with anomalous copper in soil values as

well as chargeability highs from the induced polarization surveys. The known mineralization occurs at the north

end of two kilometre long anomaly that runs along the east side of Albert Lake, very little of which has been

drill tested. Additional induced polarization, oriented north-south, rather than previously tested east-west

directed lines, further to the south along the east shore of the lake, was completed in 2010 and confirms a

substantial untested chargeability anomaly exists in this area.

The copper anomalous rock samples collected in 1989 in the northeast portion of the claims require additional

follow up.

In 2012 3.2 kilometers of drill access and six drill sites were constructed on induced polarization targets

developed in 2010 and 2011. Rock sampling completed coincidently with this work identified significant

mineralization (0.78% Cu) in volcanic rock (dacite). This area should be further explored.

26: Recommendations

A two-phase program is proposed: an initial phase of surface work to cover the area IP-magnetics survey. This

initial phase is budgeted at $102,790.

For Phase I, a 11 kilometre IP-Magnetic survey program is proposed for the under-explored southern part of the

Indata Property where recent exploration has discovered indications of porphyry mineralization. These

indicators include coincidental copper in soil-chargeability anomalies, float rock samples with of 0.78% Cu, and

the existence of intrusive rocks in outcrop. An additional 4 kilometres survey is proposed over the Northeast

Copper anomaly. Proposed lines are shown on Figure 8.

Should appropriate targets be discovered during the Phase I program, it should be followed up by diamond

drilling of the best targets. A Phase II, 1,200 metre program costing $355,810 is proposed. This program would


pg. 28

include drill access, site preparation drilling, sampling and reporting and would be consistent with the multi-

year permit in the application process.

Table 8 Proposed Budget Phase I

Year 1 - Phase I - Induced Polarization Ground Magnetics (15 Km)

Field Assistants (Line cutting) 4 for 15 days @ $450 day $27,000.00

IP Contractor 15 days @ $2100 day $31,500.00

Field Assistants (IP Crew) 3 for 15 days @ $450 $20,250.00

Room and Board 60-man days @ $110 day $6,600.00

Trucks 2 for 34 days @ $80 day $5,440.00

Supervising Geologist 1 for 15 days @ 800 day $12,000.00

Total $102,790.00

Table 9 Proposed Budget Phase II (contingent upon Phase I)

Year 2 - Phase II - Drilling (1,200 m)

Project Geologist 1 (for 21 days) @$800 day $16,800.00

Contract Drilling 1,500 meters @$120 meter $180,000.00

Extra Costs $20 per meter (1,500 meters) $30,000.00

Field Assistants 2 (for 21 days) @$450 day $18,900.00

Room and Board 7 men for 21 days @$110 day $16,170.00

Truck Costs 3 Vehicles, 21 days @80 day $5,040.00

Drill Samples 750 (2 m intervals) @ $30 sample $22,500.00

Excavator Costs 50 hours @ $160 per hour $8,000.00

Consumables including fuels $5,000.00

Supervising Geologist 1 (for 10 days) @ $800 day $2,400.00

Reporting $15,000.00

Contingency @10% $36,000.00

Total $355,810.00


pg. 29

27: References

Armstrong, J.E., 1946: Takla, Cassiar District, British Columbia. Map 844A, 1 inch to 4 Miles, Canada

Department of Mines and Resources.

Ash, C.H and Arksey, R.L, 1990: The Listwanite Gold Association in British Columbia; in Geological Fieldwork

1989, B.C. Ministry of Energy Mines and Petroleum Resources, Paper 1990-1, p. 359-364.

Bailey, D.G., Garratt, G.L. and Morton, J.W., 1989: Summary of the Indata Project, Mincord Exploration

Consultants Ltd., Report to Eastfield Resources Ltd.

Bailey, D.G., 1996, The Indata Property, Geology, Exploration History And 1996 Diamond Drilling Program.

Bailey, D.G., May, 2003: Castillian Resources Corp., The Indata Property, Omineca Mining Division, BC.

Cui, Y., Miller, D., Schiarizza, P., and Diakow, L.J., 2017. British Columbia digital geology. British Columbia

Ministry of Energy, Mines and Petroleum Resources, British Columbia Geological Survey Open File 2017-8, 9p.

Fugro Airborne Surveys, October 2000: Digital Archive of Indata Lake Survey, date flown 1990.

Garratt G.L., Morton J.W., 1988: Indata Project Soil Geochemistry Assessment Report

Johnson, R.J. (Bob) and Russell, Colin W.P., 2010: Summary Report (43-101) on the Indata Property, Omineca

Mining Division BC.

Johnson, R.J. (Bob)., August, 2015, Summary Report (43-101) on the Indata Property, Omineca Mining Division

BC.

Monger, J.W.H., 1977: Upper Paleozoic Rocks of the Western Cordillera and their bearing on Cordilleran

Evolution; Canadian Journal of Earth Science, volume 14(8), p.1832-1859.

Morton, J.W., 1989: Geochemical Survey, Geophysical Survey (VLF-EM and Magnetometer) and Petrographic

Survey on the Indata. Assessment Report.

Morton, J.W., 1996: Report on Geochemical Till Sampling and Trenching Program on the Indata Property,

Mincord Exploration Consultants Ltd., Report to Eastfield Resources Ltd.

Morton, J.W., 2004: Report on 2003 Fieldwork on the Indata property, Omineca Mining Division, BC, for

Castillian Resources Corp and Eastfield Resources Ltd. Report filed for Assessment Work requirements.

Morton, J.W., 2005: Report on the 2005 diamond Drilling Program on the Indata Property, Omineca Mining

Division, BC, with recommendations for Continuing Exploration for Aberdeen International Inc. and Eastfield

Resources Ltd. Report filed for Assessment Work requirements.

Morton, J.W., 2008: Report on the 2007 Fieldwork on the Indata Property, for Redzone Resources Ltd. and

Eastfield Resources Ltd.; Report filed for Assessment Work requirements.

Morton, J.W., 2009: Report on the 2008 Diamond Drill Program on the Indata Property, for Max Resource Corp.

and Eastfield Resources Ltd.; Report filed for Assessment Work requirements.

Morton, J.W., January 12, 2011, Assessment Report on the Indata Property, Omineca Mining Division, BC

Morton, J.W., Dec 15, 2011, Assessment Report on the Indata Property, Omineca Mining Division, BC

Morton, J.W., Feb 23, 2013b, 2013 Assessment Report on the Indata Property, Omineca Mining Division, BC

Morton, J.W., Feb 23, 2013a, 2012 Assessment Report on the Indata Property, Omineca Mining Division, BC Nixon, G.T. and Hammack, J.L., 1991: Metallogony of Ultramafic-mafic rocks in British Columbia with Emphasis

on Platinum Group Elements; in Ore Deposits, Tectonics and Metallogony in the Canadian Cordillera, B.C.

Ministry of Energy Mines and Petroleum Resources, Paper 1991-4, P.125-158


pg. 30

Protected Areas of British Columbia Act, [SBC 2000] CHAPTER 17, Schedule D

Scott, A., 1989: Induced Polarization/Resistivity Surveys, Indata Property, Scott Geophysics Ltd., Report to

Eastfield Resources Ltd.

Scott, A., 2003: Logistical Report on Induced Polarization/Resistivity Surveys, Indata Property, Scott Geophysics

Ltd., Report to Castillian Resources Corp. and Eastfield Resources Ltd.

Scott, A., Nov 19, 2010: Logistical Report on Induced Polarization/Magnetometer Surveys, Indata Property,

Scott Geophysics Ltd., Report to Eastfield Resources Ltd.

Schiarizza, P. and MacIntyre, D., 1999: Geology of the Babine Lake – Takla Lake Area, Central British Columbia,

B.C. Ministry of Energy and Mines, Geological Fieldwork, Paper 1999-1, p. 33-68

Simpson, R.G., 2010, Technical Report Canyon Creek Copper-Gold Deposit, Lustdust Property

SRK Consultants, December 2016, Independent Technical Report for the Kwanika Copper-Gold Project, Canada

Yorston, R., 1998: Assessment Report, Diamond Drilling on the Indata Property, Omineca Mining Division,

Guinet Management, Report for Clear Creek Resources Ltd.

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